For the purposes of this Auditing Standard, the following terms have the meanings attributed below:


Aggregation risk – The probability that the aggregate of uncorrected and undetected misstatements exceeds materiality for the financial report as a whole. (Ref: Para. A19)


Component – An entity, business unit, function or business activity, or some combination thereof, determined by the group auditor for purposes of planning and performing audit procedures in a group audit. (Ref: Para. A20)


Component auditor – An auditor who performs audit work related to a component for purposes of the group audit. A component auditor is a part of the engagement team [10] for a group audit. (Ref: Para. A21–A23)


See ASA 220, paragraph 12(d).


Component management – Management responsible for a component. (Ref: Para. A24)


Component performance materiality – An amount set by the group auditor to reduce aggregation risk to an appropriately low level for purposes of planning and performing audit procedures in relation to a component.


Group – A reporting entity for which a group financial report is prepared.


Group audit – The audit of a group financial report.


Group auditor – The group engagement partner and members of the engagement team other than component auditors. The group auditor is responsible for:

  1. Establishing the overall group audit strategy and group audit plan;
  2. Directing and supervising component auditors and reviewing their work;
  3. Evaluating the conclusions drawn from the audit evidence obtained as the basis for forming an opinion on the group financial report.


Group audit opinion – The audit opinion on the group financial report.


Group engagement partner – The engagement partner [11] who is responsible for the group audit. (Ref: Para. A25)


See ASA 220, paragraph 12(a).


Group financial report – A financial report that includes the financial information of more than one entity or business unit through a consolidation process. For purposes of this ASA, a consolidation process includes: (Ref: Para. A26–A28)

  1. Consolidation, proportionate consolidation, or an equity method of accounting;
  2. The presentation in a combined financial report of the financial information of entities or business units that have no parent but are under common control or common management; or
  3. The aggregation of the financial information of entities or business units such as branches or divisions.


Group management – Management responsible for the preparation of the group financial report.


Group performance materiality – Performance materiality [12] in relation to the group financial report as a whole, as determined by the group auditor.


See ASA 320 Materiality in Planning and Performing an Audit, paragraphs 9 and 11.


Reference in this ASA to “the applicable financial reporting framework” means the financial reporting framework that applies to the group financial report.